MassMutual International LLC, the international insurance holding company of Massachusetts Mutual Life Insurance Company, has announced a deal in which it will sell roughly 85.1% of its Japanese life insurance and wealth management affiliate to Nippon Life for US$935 million in cash.
The transaction with Nippon Life, Japan’s largest life insurer, is expected to be completed in the first half of 2018, and will see MassMutual International retain 14.9% ownership of MassMutual Japan.
Roger Crandall, Chairman, President and Chief Executive Officer (CEO) of MassMutual, said: “At MassMutual, one of our distinct competitive advantages has long been our diverse portfolio of businesses both at home and abroad, including our international insurance affiliates.
“This exciting announcement represents a milestone moment for our company and its policyowners by realizing the significant value that has been delivered through the long-term success of MassMutual Japan, which we acquired nearly 17 years ago.
“Just as important, our continued partial ownership of MassMutual Japan gives us the ability to join together with Nippon Life – the preeminent mutual life insurer life in Japan – and expand our participation in the growing Asian markets.”
Eddie Ahmed, Chairman, President and CEO of MassMutual International, added: “We are delighted to enter into this definitive agreement with Nippon Life. MassMutual Japan’s current customers will benefit from the financial strength and backing of the country’s largest life insurer, as well as gain access to an even broader range of high quality financial solutions.
“Additionally, the transaction furthers our international growth plans by capitalizing on global opportunities, through strategic partnerships and joint ventures.”
MassMutual Japan was acquired by MassMutual in 2001, before which it was known as Heiwa Life. Following the latest transaction, the company will remain headquartered in Tokyo.